Tehran and Kabul reach major trade agreements

During the visit of the head of the Iranian Trade Promotion Organization (TPO)’s Afghan desk to Afghanistan, important agreements were made for the development of trade relations between the two countries, the TPO portal reported.

Hamidreza Karbalaie Esmaili’s visit to Afghanistan was aimed at improving trade relations between the two neighbors in the fields of technical and engineering services, pharmaceuticals and medical equipment, petrochemical products, food industry, etc.

During the visit, Esmaili met and held talks with the economic, commercial, and medical officials of the country, including the acting minister of public health, first deputy of the chamber of commerce and investment, director general of Afghanistan customs, deputy and senior advisor to the acting minister of trade, consul general of Iran in Herat, border guard commissioner, and director general of Dogharoun customs.

Following the talks, the two sides reached initial agreements for completing several infrastructure projects and decided to begin negotiations on a preferential trade agreement and expanding customs cooperation.

During the talks, the parties prepared a list of 10 commodity items for the implementation of the first phase of the preferential trade agreement. The number of items will be increased in the near future.

Also, agreements were made regarding the formation of a joint industrial zone at the two countries' border, with energy infrastructure being supplied by Iran and the investment for establishing the zone being provided by Afghan businessmen in collaboration with the Iranian private sector.

The Afghan side also announced its readiness to open a transit route from Pakistan to Iran’s Khorasan Razavi Province via the Taftan-Chaman-Islam Qala-Mashhad route, which will reduce the route between the two countries from 1,500 to less than 1,000 kilometers.

Acceptance of elite Afghan students in various medical and non-medical fields in Iranian universities and bilateral cooperation regarding the specialized training of Afghan medical staff by sending Iranian professors to Afghanistan were among other subjects that the parties agreed upon.

 

Iran and Pakistan to develop joint border markets

Iran and Pakistan held an online meeting to discuss issues related to developing border trade and reached an agreement to establish the first joint border market of the two countries, said an official of Iranian Trade Promotion Organization (TPO).

“A virtual meeting was held to discuss a memorandum of understanding (MOU) on the establishment of joint border markets between Iran and Pakistan, and agreements were reached in this regard,” IRNA quoted Reza Seyed Aqazadeh as saying.

According to the official, following the preparation of the draft for the mentioned MOU in December 2020, additional negotiations were made for finalizing the memorandum in the online meeting which was held at the level of deputy ministers.

Referring to the 950-kilometer border between Iran and Pakistan, as well as the interest of two countries in developing trade, Seyed Aqazadeh noted, "Border markets have so far been created unilaterally by Iran or Pakistan, and a joint market will be established between the two countries for the first time."

The development of the joint border markets is expected to improve the business activities of border residents, he added.

“Based on the agreements reached, the two sides have appointed technical teams to determine the location and size of the joint markets and to prepare a list of the items that would be traded in the markets,” the official explained.

He stated that joint markets will be set up in Kuhak and Pishin (Saravan) in the near future, and specified, “Pakistan has proposed six points on the border to create joint markets, and the Iranian side is interested in setting up joint markets as much as possible in place of existing approved markets.”

Currently, border markets of Saravan-Jaleq, Saravan-Kuhak, Sarbaz-Pishin and Chabahar-Rimdan in Sistan-Baluchestan province are active on the border with Pakistan, and the Mirjaveh market has been merged with Mirjaveh customs, according to Seyed Aqazadeh.

Earlier in December 2020, Pakistan’s Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood had said his country was seeking to enhance ties with the Islamic Republic of Iran, especially in economic areas.

Considering Pakistan’s relatively large consumer market, expansion of trade with the country and boosting exports to its market has become one of Iran's priorities in recent years.

Iran's exports to Pakistan in the past Iranian calendar year was reported at US$1.18 billion, but in the meantime, financial and banking problems have created obstacles in the trade between the two countries.